New survey shows average rents remain stable

by Gary Whittaker

The average rent in England remained largely stable during the third quarter of 2017, according to new figures from a national index compiled by rental franchise Belvoir.
According to the firm, the price paid by tenants per month increased by just £3 compared to the same period last year. The highest rents were found to be in the south-east (£1,052) and London (£1,436), while the lowest were £595 in the north-west and £621 in the north-east.
Overall, half of the 50 counties surveyed recorded a drop in rental rates, including Berkshire, Surrey and Hertfordshire. However, the main trend was that rents have been relatively stable since 2008.
Belvoir reported that rents remained unchanged on average for houses at 53 per cent of its offices, while they were also largely static for flats and any increases were described as "small".
This was put down to demand for flats decreasing and that for houses remaining strong at a time of limited supply.
In addition, many more tenants were found to be staying in their properties for longer. Some 42 per cent said they had been in situ for 13 to 18 months, while 14 per cent had remained for longer than two years. This is likely to have an impact on the amount of rent landlords feel they can charge.
Another factor contributing to the trend in rental costs was the discovery that six in ten landlords were selling up at the same time as fewer investors were recorded as entering the market, further decreasing supply.
Belvoir said it expects to see little change in rents when the figures for the final quarter of 2017 become available.
The news comes after the November 2017 HomeLet Rental Index revealed average rents had risen by only 0.7 per cent to £904 during the prior 12 months.
It may prompt investors to look closely at regional variations in rental costs in order to find good investment opportunities.
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03-January-18General Lettings News